Tesla, Inc. (NASDAQ:TSLA) is now the most valuable US automaker ever

Tesla, Inc. (NASDAQ:TSLA) is now the most valuable US automaker ever

Tesla, Inc. (NASDAQ:TSLA) is now the most valuable US automaker ever

Wall Street’s current love for Tesla has lifted its shares to a level never before achieved by a US automaker.

Tesla shares, which are up more than 160% since hitting a 52-week low last June, now have a market value of $86.5 billion. That gives the electric car-maker the distinction of being the most valuable US automaker in history.

This achievement easily tops the previous record high of $76.1 billion for shares of Ford in 1999, according to data from the Center for Research in Security Prices.

The high watermark for GM stock was more recent, when it reached a market value of $67.7 billion in October 2017.

Today both of those stocks have lost a good chunk of their value. GM, valued at $50.7 billion, and Ford, worth $36.9 billion, together are worth only about 1% more than Tesla alone.

Italian-American automaker Fiat Chrysler is a distant fourth, with a market value of €19.9 billion, or $22 billion.

Of course, Tesla is no Apple, whose market value of $1.4 trillion makes it the most valuable US company in history. But its valuation is remarkable given that Tesla is fraction the size of the more established automakers.

The company sold a total of 367,500 cars worldwide in 2019, while GM’s sales in the United States alone came to 2.9 million vehicles, along with another 3 million in China. Ford had US sales of 2.4 million while Fiat Chrysler US sales came to 2.2 million.

Tesla also is growing much faster than other carmakers. Its sales increased by 50% in 2019, and that growth and investors’ hopes for its future performance has lifted its shares well past many of its competitors.

Tesla shares rose in the last seven months after it reported better-than-expected sales and profits and started production at a plant in Shanghai sooner than many expected. The stock’s run-up was a disaster for investors who shorted the shares, who lost more than $7 billion betting on a decline in value.

GM, which was hit by a 40-day strike that cost it nearly $3 billion, has seen its shares rise only 5% in that same period. Ford, had shares fall by 2%, while Fiat Chrysler shares are up 13%.

The past values for Ford and GM shares would be higher if adjusted for inflation, of course. The 1999 pinnacle for Ford shares would be worth $117.8 billion in today’s dollars. And GM’s top valuation, reached in 2017, wouldn’t be much greater although its shares did reach $61.3 billion in 1999, worth $94.8 billion today.

Chrysler was never worth more than today’s Tesla, but in 2007 just before the combined Daimler Chrysler split up, it had a valuation of $109.5 billion. Daimler Chrysler later sold off Chrysler.

Tesla still has ground to cover if it wants to become the most valuable automaker in the world.

Toyota has a market value of 25 trillion yen, or about $228 billion. Volkswagen has a market cap of €90.3 billion, or $100.4 billion. But Tesla is more valuable than many other major global automakers, including Honda, Nissan, Hyundai, BMW and Daimler.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 392.52.

The projected upper bound is: 506.31.

The projected lower bound is: 456.47.

The projected closing price is: 481.39.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 77.4841. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 77.22. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 32 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 19 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -3.190 at 478.150. Volume was 36% above average (neutral) and Bollinger Bands were 107% wider than normal.

Open     High      Low     Close     Volume___
481.790 484.940 473.700 478.150 12,976,832
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 450.89 371.46 271.83
Volatility: 49 41 58
Volume: 16,120,968 10,167,015 9,699,460

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA INC is currently 75.9% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 16 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition.

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